FCC Modifies High-Cost Support Mechanism for Universal Service Program

The FCC revised its high-cost universal service support mechanism for the largest local telephone companies. In response to a remand by the U.S. Court of Appeals of the Tenth Circuit, the FCC was required 1) to define more precisely how its high-cost mechanism satisfied the statutory requirement to achieve reasonably comparable phone rates among rural and urban areas, 2) to better justify the cost benchmark used to determine support amounts, and 3) to develop a mechanism to induce states to assist in implementing the goals of universal service.


The FCC found that rural and urban phone rates generally are reasonably comparable today, based on data from a General Accounting Office (GAO) Report, and therefore concludes that current support levels should be maintained. In 2002, eight states received $233 million in support.


FCC Chairnan Michael K. Powell described the action aa "the ultimate truth-in-billing measure" although it does not eliminate all implicit support in local rate structures. Powell said that in a competitive market the goal of universal service can only be achieved by "creating an explicit support fund to benefit consumers who need it and by eliminating the vestiges of implicit support that misallocate resources and distort competition."http://www.fcc.gov

• Qwest Communications issued a statement condemning the FCC's "failure to fix the Universal Service High Cost Fund. Gary R. Lytle, Qwest senior vice president for federal relations, said more than 80% of the high-cost fund is funneled to just three states. The company is calling on the FCC to more "evenly distribute the hundreds of millions of dollars aimed at improving the lives of rural telecommunications customers."

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More than 80% of U.S. Broadcasters are On-Air with DTV Signal

More than 80% of all commercial TV stations in the U.S. are currently on-air with a DTV signal. The FCC noted that broadcast stations have made significant progress and that most of the remaining stations have made diligent efforts to broadcast a DTV signal. A total of 1,061 TV stations have made the required DTV implementation. Stations requesting extensions of their DTV deadline are required to demonstrate that failure to construct has been due to circumstances either unforeseeable or beyond their control.
http://www.fcc.gov

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FCC Opens 70, 80, and 90 GHz Bands for Millimeter Wave Applications

The FCC adopted service rules for the commercial use of spectrum in the 71-76 GHz, 81-86 GHz, and 92-95 GHz bands, which are well-suited for broadband, millimeter wave applications. Because of the "pencil-beam" characteristics of the signals transmitted in the 71-76 GHz, 81-86 GHz and 92-95 GHz bands, systems can be deployed in close proximity of one another. The FCC is pursuing a non-exclusive licensing approach for these bands. Traditional frequency coordination between users will not be required. Instead, each path will be registered in a database, and entitled to interference protection based on the date of registration.
http://www.fcc.gov

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FCC Implements 3G Spectrum Rules

The FCC implemented service rules for the 1710-1755 MHz and 2110-2155 MHz spectrum bands, effectively opening the bands for new 3G. The new rules cover application procedures, licensing, technical operations, and competitive bidding. The spectrum will be licensed by geographic areas under the FCC's market-oriented, competitive-bidding rules. The licenses for these bands will have an initial 15-year term with 10-year renewal terms. Licensees will be required to show that they have provided substantial service by the end of the license term; however, no interim construction requirements have been imposed.


FCC Chairman Michael K. Powell said the 90 MHz of additional licensed spectrum made available through this order would be a key building block for the broadband Internet future of licensed wireless service. He especially commended aspects of the order that provide for the flexibility of licensees to choose the types and characteristics of the services that they will offer in their licensed spectrum.


FCC Commissioner Michael J. Copps expressed concern that one company could potentially end up controlling the entire AWS band in a city or a geographic region, leaving no AWS spectrum for competitors. He said "we have arrived at this point because the Commission eliminated the overall spectrum cap more than a year ago, in a decision from which I dissented. So the Commission has already crossed the Rubicon."http://www.fcc.gov

• In November 2002, the FCC first allocated the additional 90 MHz of spectrum in the 1710-1755 MHz and 2110-2155 MHz bands that can be used to provide new advanced wireless services, i.e. 3G or IMT-2000. The spectrum was previously used by the federal government, microwave licensees and multipoint distribution services.

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Microsoft Signs 22 new Broadband Partners for Xbox Live

Microsoft has signed 22 new broadband partners to its Xbox Live Compatibility Program, adding to a list that already includes 50 other broadband providers in North America, Japan and Europe. The new partners are from the eight countries that will be launching Xbox Live in October: Australia, Austria, Denmark, Finland, Ireland, Korea, Norway and Switzerland. They include the following:

• Australia: OptusNet (Cable), Telstra Big Pond (DSL/Cable)


• Austria: UPC/chello (cable), Telekom Austria (DSL)


• Denmark: TDC (DSL/cable), Telia Stofa (cable)


• Finland: Elisa (DSL), Helsinki Television (HTV Cable) (cable), TeliaSonera Finland (DSL)


• Ireland: Eircom (DSL), Esat BT (DSL), NTL (cable)


• Korea: KT (DSL)


• Norway: UPC/chello (cable), NextGenTel (DSL), Telenor (DSL),


• Switzerland: Bluewin (DSL), sunrise (DSL)

Microsoft currently has more than 500,000 people playing on Xbox Live worldwide. There are on average more than 15 million gaming sessions every week.
http://www.microsoft.com

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Taqua Extends Class 5 Switching Intelligence to Broadband Edge

Taqua introduced a new series of Class 5 switching system products designed for putting switching intelligence at the edge of the network while enabling an open architecture that can selectively deliver advanced applications to subscribers across any access medium. Taqua's design is to put softswitching functionality at central offices serving up to 80,000 subscribers as well as in remote-office locations serving 600 subscribers or less. This would provide flexibility in delivering advanced services when and where such capability is needed in the network.


For remote office locations, Taqua's is introducing the iX700, an intelligent line access gateway, based on its switch-on-a-card architecture. The iX700 can terminate 624 POTS or xDSL lines. It could be deployed in a remote-office or controlled environmental enclosure. It provides TDM or IP based trunking and can be configured with POTS, xDSL, DS1/E1 or IP interface cards. Signaling types supported include loop start, ground start, DTMF, MF, DP, GR-303, SFI, as well as SIP, SIP-T, NCS+DQoS, MGCP, and H.248.


For central offices, Taqua's Open Compact Exchange has been renamed the iX7000 and enhanced with the addition of an IP card for delivering packet voice in addition to TDM. The iX7000 can be configured with POTS, DS1/E1, DS3/E3, OC-3/STM-1o, OC-12/STM-4o and IP interface cards. It also supports the same range of signalling types.
http://www.taqua.com

• In January 2003, Taqua, a start-up based in Richardson, Texas, secured over $20 million in new funding to support its next generation Class 5 switching system. Taqua's flagship OCX incorporates softswitch, signaling and media gateway functionality on a single-card design. The round brought total funding of the company to over $140 million. In addition, Taqua also announced that Rich McGinn, a general partner at RRE Ventures, and former chairman and CEO, Lucent Technologies, and Alex Guira, partner, Investcorp, had joined its Board of Directors.

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Metalink Claims 200 Mbps+ for New VDSLPlus Chipset

Metalink introduced its next generation VDSLPlus chipsets for access switches, DSLAMs and customer premise equipment, claiming downstream transmission speeds over 200 Mbps (aggregate) over short ranges using a single, telephony-grade, copper pair. The company said VDSLPlus achieves significant improvements in speed and reach over standard 4-band VDSL technology by utilizing an additional 5th band in the unused spectrum between 12-30 MHz. Its new chipset is denser, consumes less power, and is "aggressively priced" compared to existing VDSL and ADSL solutions. Metalink said it is also fully spectral compatible with all VDSL standards' band plans (998, 997, and those defined by the Chinese CTSI). Its VDSLPlus products are also fully compliant with existing, 4-band, VDSL standards and are fully backwards compatible to Metalink legacy VDSL products. The devices include an Ethernet interface, allowing a glue-less connection to off-the shelf Ethernet switching components, and also supports ATM interfaces over VDSL.
http://www.metalink.co.il

• In July, Metalink described plans for a wireless LAN technology that it claims will deliver a five-fold boost in link speed compared to the currently available 802.11x WLAN technology. The company expects to be ready to demonstrated its WLANPlus chipsets before the end of the year. Metalink is a developer of QAM-based VDSL silicon.

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India's Reliance Group to Acquire FLAG Telecom

Reliance Group, India's largest business house with total revenues of US$16.8 billion, agreed to acquire FLAG Telecom Group for $207 million, representing a premium of more than 50% over the closing price of FLAG's shares on 15-Oct-03. Reliance is a key customer on the FLAG global network. The deal requires regulatory approvals and the approval of FLAG Telecom's shareholders.
http://www.flagtelecom.com

• In May 2003, FLAG Telecom announced plans to enhance the reach of its European network through an agreement with Verizon Global Solutions. This agreement is a key element in FLAG's global network plan. FLAG said it would also open new POPs in Amsterdam and Frankfurt to provide seamless connectivity to its submarine cable systems: FLAG Atlantic-1 (FA-1), FLAG Europe Asia (FEA) and FLAG North Asia Loop (FNAL).



• In March 2003, FLAG Telecom announced a capacity expansion to key segments of its cable system from Western Europe to Japan through the Middle East, India, Southeast Asia and China. This upgrade will double the system's capacity on key segments from the U.K. to the Middle East (from 10 Gbps to 20 Gbps).



• In October 2002, FLAG emerged from Chapter 11 with its network in tact and a significantly lower level of debt. Verizon originally was one of the principal shareholders in FLAG Telecom.

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Comcast Expands its VOD Offerings

Comcast began offering HBO on Demand and Cinemax on Demand to millions of customers in New England, Baltimore, Washington, DC and Detroit, as well as 1.9 million in the Philadelphia region. Comcasts expects the new content to be a key driver for its VOD service. The newly added content includes HBO original programming hits including "Sex and the City," "The Sopranos," "Six Feet Under," "K Street," "Curb Your Enthusiasm" and "Carnivale."


Comcast's ON DEMAND service already included hundreds of movies, as well as subscription services and free content for digital cable customers.
http://www.comcast.com

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Sprint Reaches 250,000 DSL Line Milestone

Sprint has activated its 250,000th DSL customer, four years after launching the service in Florida. Sprint said it continues to aggressively roll out DSL in its 18-state local territory, expanding availability from 3.8 million lines to 4.3 million lines from January to August.
http://www.sprint.com

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PMC-Sierra Reports Revenue of $63 Million, Returns to Profitability

PMC-Sierra reported Q3 revenue of $63.1 million, up 4.5% compared with $60.4 million for Q2 2003 and up 5.9% compared with $59.6 million for the same period a year ago. Net income was $0.8 million (non-GAAP diluted earnings per share of $0.00) compared with a non-GAAP net loss of $3.9 million (non-GAAP net loss per share of $0.02) in the prior quarter.


Bob Bailey, president and CEO of the company said "after two-and-a-half years of hard work, PMC-Sierra has reached its intermediate goal of achieving profitability."http://www.pmc-sierra.com

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Broadcom Reports Revenue $425.6 million, a 13% Sequential Rise

Broadcom reported Q3 net revenue of $425.6 million, an increase of 12.6% from the $377.9 million reported for the second quarter of 2003 and an increase of 46.8% from the $290.0 million reported for the third quarter of 2002. Net loss computed in accordance with generally accepted accounting principles (GAAP) for the third quarter of 2003 was $6.3 million, or $.02 per share (basic and diluted), compared with a GAAP net loss of $891.7 million, or $3.08 per share (basic and diluted), for the second quarter of 2003, and a GAAP net loss of $183.3 million, or $.68 per share (basic and diluted), for the third quarter of 2002.


Broadcom credited new product momentum in enterprise networking combined with continued momentum in a number of its new end markets for the growth.
http://www.broadcom.com

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DIRECTV Launches DVR With TiVo Advertising Campaign

DIRECTV announced a series of promotions to stimulate the growth of Digital Video Recorders (DVRs) and high-definition (HD) television receivers with its satellite service. The promotions include the first-ever dedicated DIRECTV DVR with TiVo consumer advertising campaign.
http://www.directv.com

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Cablevision's Rainbow DBS Introduces its VOOM HDTV Service

Cablevision's Rainbow DBS division launched its "VOOM" service featuring extensive HDTV programming to customers throughout the continental United States. During an initial preview period, as the number of available channels continues to expand, charter customers pay no monthly programming fees through January 2004. VOOM initially features a package of 21 commercial-free, 1080i HDTV channels. VOOM customers will also such cable networks as the Disney Channel, A&E, FX, and AMC, as well as over-the-air digital local broadcast channels delivered in standard definition (SD) and in HD where available. By February 2004, VOOM anticipates having 39 HD channels and 88 standard-definition channels. After the trial period, VOOM service starts at $39.90 per month for the basic tier of channels.
http://www.voom.com

• VOOM involves an initial one-time cost of $749.99, for which customers receive a satellite dish, remote control, digital off-air antenna, and a set-top receiver.


• 
  
  VOOM is using the Rainbow 1 satellite and MPEG-4-capable set-top receivers developed with Motorola. When a planned upgrade to MPEG-4 is carried out next year, VOOM will be able to double the available satellite capacity.

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FAA Selects Marconi to Power Critical Communications Systems

The Federal Aviation Administration (FAA) awarded a five-year, $6.7 million contract to Marconi to deliver equipment and services to provide primary and backup power for air-to-ground communications systems used by the agency of the U.S. Department of Transportation. Marconi's agreement with the FAA covers deployment of its Vortex power platform, a DC power platform built for voice, data and video applications in wireline and wireless networks.
http://www.marconi.com

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Force10 Gear Used for Transcontinental 10 GE Network

Force10 Networks' E-Series switch/routers have been deployed for a transcontinental 10 GE wide area network. The project consists of a SURFnet OC-192 lambda between Geneva and the StarLight facility in Chicago via Amsterdam and another OC-192 lambda between this same facility in Chicago and Carleton University in Ottawa, Canada provided by CANARIE and ORANO. The Force10 switch/routers connected directly to the SONET equipment using two 10 Gbps WAN PHY interfaces. Ixia's 400T traffic generator and analyzer routers were used to validate performance between the Geneva/Chicago link and the Chicago/Ottawa link. Network expertise and third party validation was also provided by Cortex Networkshttp://www.force10networks.com
http://www.ixiacom.com

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RCN Launches 5 Mbps Cable Modem and Home Net Service in SF

RCN began offering a 5 Mbps cable modem service in San Francisco, which is up to three times faster than the competing DSL service. The company is also offering a Home Networking package that provides a firewall and access to basic parental controls. RCN can also provide PC cards and new in-home wiring if needed.
http://www.rcn.com

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Juniper Networks Outlines Infranet Initiative

Juniper Networks outlined its vision for a public network that combines the ubiquitous connectivity of the Internet with the assured performance and security of a private network. Juniper envisions an "Infranet" -- a new network designed to unlock multimedia person-to-person communication, facilitate the trend towards machine-to-machine applications such as grid computing, enable businesses and governments to reap the full benefits of Web-enabled operations, and provide the level of performance and security vital to the future growth of the online economy.


An "Infranet" is neither a public Internet nor a private network. It is a series of infranets that will be built individually by service providers to form a global 'meta-network.'


Scott Kriens, chairman and CEO of Juniper Networks, described the Infranet as "a superset of the original Internet" that is able to give each user his own unique slice of a secure public infrastructure. A key attribute would be the ability for each users to select and be billed for the network experience appropriate for their application.

Juniper Networks is issuing a "call to action" asking for industry-wide participation in developing the necessary specifications for such an Infranet. Specifically, inter-carrier connections must be able to provide:

• the ability for premise equipment and applications to communicate quality, security and bandwidth requirements to the network


• 
  
  the ability for networks to communicate applications-appropriate levels of service and security when handing off traffic and to implement those service levels when receiving traffic


• 
  
  accounting mechanisms that enable carriers to bill each other for traffic handed off between their networks


• 
  
  appropriate interfaces that meet regulatory requirements by allowing regulated networks to signal and communicate fairly and consistently with unregulated networks.

Lucent Technologies endorsed the Infranet Initiative.
http://www.juniper.net

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Samsung Demos 1xEV-DV System - Downloads in 300 to 500 Kbps Range

Samsung demonstrated a CDMA2000 1xEV-DV system capable of delivering peak download speed of 3.1 Mbps and average data speeds targeted for the 300 to 500 Kbps range. Samsung anticipates commercial deployment of 1xEV-DV starting in the 2006 timeframe, saying it will be a more effective solution that supports both voice and data services.
http://www.samsung.com

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Nortel Networks CEO Sets Out Vision of Network Transformation

Service providers need to make sustained investments in their networks or their growth opportunities will be limited, said Frank Dunn, president and CEO of Nortel Networks, in a keynote address at ITU Telecom World 2003 in Geneva. Dunn said global communications has reached an important inflection point whereby changes in the design of communications network infrastructure have created new sources of revenue and greater efficiency for service providers. Key elements of the new network, according to Dunn, include broadband and optical technologies, voice over packet, wireless data, multimedia services and applications, and security, all underpinned by a packet network core. He also said that enriching global communications and creating new sources of revenue will also require a regulatory environment that encourages investment in research and development, innovation and network transformation.
http://www.nortelnetworks.com

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